Sensex slips 0.05%, Nifty 50 inches up 0.02% amid IT stock pressure

Market Update at 04:00 PM: Indian equity benchmark indices ended on a mixed note on Tuesday, as weakness in information technology (IT) stocks offset gains in financial services, FMCG and metal shares. Market sentiment also remained cautious due to the weekly expiry of Nifty derivatives.

The BSE Sensex snapped its two-day winning streak and closed 0.05 per cent lower at 85,524.84. In contrast, the NSE Nifty50 extended its rally for a third consecutive session, edging up 0.02 per cent, or 4.75 points, to settle at 26,177.15.

On the BSE, ITC, UltraTech Cement and Tata Steel emerged as the Top Gainers, supported by buying interest in FMCG and metal stocks. Meanwhile, Infosys, Tech Mahindra and Bharti Airtel weighed on the index, with IT stocks facing selling pressure.

On the NSE, Coal India, Shriram Finance and ITC led the gainers’ list, while Infosys, Bharti Airtel and Adani Ports were among the Top Losers.

Broader markets ended mixed. The Nifty SmallCap 100 index advanced 0.37 per cent, while the Nifty MidCap 100 index closed flat, reflecting selective buying across segments.

Sector-wise, Nifty IT was the worst performer, declining 0.80 per cent amid concerns over global demand and USD revenue outlook. On the other hand, Nifty Media topped the charts with a gain of 0.84 per cent. Metal, Media and FMCG indices also ended in positive territory.

Market Update at 12:35 PM: Indian equity benchmark indices traded flat on Tuesday after two consecutive sessions of gains, as selling pressure in information technology (IT) and realty stocks offset positive global cues.

Around 12:04 PM, the BSE Sensex was down 0.04 per cent, or 8.21 points, at 85,560.16, while the NSE Nifty 50 was trading 0.04 per cent, or 15.35 points higher, at 26,188.50.

Among individual stocks, Power Grid, UltraTech Cement, BEL, Kotak Mahindra Bank, Bajaj Finance, NTPC, and HDFC Bank were the top gainers. On the other hand, Infosys, Bharti Airtel, TCS, ICICI Bank, Asian Paints, Tech Mahindra, Eternal, and Axis Bank weighed on the indices.

In the broader market, the Nifty Midcap index was up 0.15 per cent, while the Smallcap index rose 0.34 per cent, indicating selective buying across smaller stocks.

Sector-wise, the Nifty IT index led the losses, trading 0.78 per cent down at 39,180.50. In contrast, the Nifty Media index emerged as the top gainer with a 1.14 per cent rise.

Market Update at 10:10 AM: India’s key equity benchmarks opened largely unchanged on Tuesday after recording gains over the previous two sessions, as the absence of fresh domestic or global triggers and expectations of thin year-end trading kept investors cautious.

The Nifty 50 slipped marginally by 0.02 per cent to 26,173.15, while the BSE Sensex edged up 0.01 per cent to 85,570.57 as of 9:16 a.m. IST. Market participants remained selective, reflecting muted sentiment ahead of the Christmas and New Year holidays in the United States, when global trading volumes typically decline.

Sectoral performance was mildly positive, with 75% of the major sectoral indices trading in the green at the open, though gains were marginal. The broader market outperformed the benchmarks, with the Nifty Smallcap index rising 0.2 per cent and the Nifty Midcap index gaining 0.1 per cent.

Among individual stocks, Ambuja Cements jumped 4.3 per cent after the company approved the merger of ACC and Orient Cement. The consolidation is expected to result in approximately 10 per cent value accretion for Ambuja Cements’ shareholders, according to management estimates.

Despite the flat opening on Tuesday, Indian equities have seen a positive momentum recently, with the Nifty gaining 1.4 per cent and the Sensex rising 1.3 per cent over the last two trading sessions.

Pre-Market Update at 7:40 AM: Indian equity benchmark indices, the Sensex and Nifty 50, are expected to open on a positive note on Tuesday, December 23, extending gains for a third consecutive session amid supportive global cues. The GIFT Nifty was trading near the 26,241 level, indicating a premium of around 30 points over the Nifty 50’s previous close. Asian markets were trading higher, tracking overnight gains on Wall Street, as investors entered a holiday-shortened trading week with improved risk sentiment.

India’s eight core industries recorded a growth of 1.8 per cent in November, recovering from flat growth in October. The improvement was driven by strong performance in cement, steel, fertilisers and coal, reflecting continued infrastructure activity and seasonal demand. Cement production surged 14.5 per cent, steel output rose 6.1 per cent, fertilisers increased 5.6 per cent and coal production grew 2.1 per cent. However, weakness in oil, natural gas, refinery products and electricity capped overall expansion. The November growth was lower than the 5.8 per cent recorded a year ago due to a high base effect. Core sector output grew 2.4 per cent during April–November, with economists estimating overall industrial growth at around 2.5–3 per cent for November.

On Monday, December 22, Foreign Institutional Investors turned net sellers, selling equities worth Rs 457.34 crore, snapping a three-session buying streak. Domestic Institutional Investors continued to provide strong support, buying equities worth Rs 4,058.22 crore, marking their 42nd consecutive session of net inflows.

Indian equity markets closed sharply higher on Monday, supported by buying in financial and IT stocks amid signs of stabilisation in the rupee. The Nifty 50 gained 206 points, or 0.79 per cent, to close at 26,172.40, while the Sensex rose 638.12 points, or 0.75 per cent, to end at 85,567.48. IT and metal stocks led the rally, with the Nifty IT index jumping 2.06 per cent, its strongest Intraday gain in a month, driven by over 3 per cent gains in Infosys and Wipro. Metal stocks advanced 1.41 per cent on the back of higher copper and silver prices. Broader markets outperformed, with the Nifty Midcap 100 rising 0.84 per cent and the Nifty Smallcap 100 gaining 1.17 per cent.

US equities began the week on a positive note, with broad-based buying across technology, banking and industrial stocks. The S&P 500 rose 43.99 points, or 0.6 per cent, to close at 6,878.49, while the Dow Jones Industrial Average gained 227.79 points, or 0.5 per cent, to 48,362.68. The Nasdaq Composite added 121.21 points, or 0.5 per cent, ending at 23,428.83. The gains pushed major indices further into positive territory for the month, with technology stocks, particularly those linked to artificial intelligence, continuing to drive momentum despite elevated volatility in December.

Investors are now awaiting US quarterly GDP data scheduled for release on December 23, which is expected to influence expectations around the Federal Reserve’s interest-rate outlook. In the UK, GDP grew a modest 0.1 per cent in the third quarter, in line with estimates, while growth for the April–June period was revised down to 0.2 per cent from 0.3 per cent, indicating continued pressure from high Taxes and persistent inflation despite resilient consumer spending.

Gold prices surged to fresh record highs as investors sought safe-haven assets amid rising geopolitical tensions. Spot gold climbed 0.5 per cent to USD 4,467.66 per ounce after touching an intraday record of USD 4,469.52, while February gold futures rose 0.74 per cent to USD 4,502.30 per ounce. Silver hovered near historic levels, with spot prices hitting an all-time high of USD 69.59 per ounce. Platinum rose 1.1 per cent to USD 2,143.70, its highest level in over 17 years, while palladium gained 1.42 per cent to USD 1,784.30, approaching a three-year high.

Crude oil prices extended their rally for a fourth consecutive session, supported by continued US restrictions on Venezuelan crude shipments. West Texas Intermediate traded near USD 58 per barrel, while Brent crude hovered around USD 62 per barrel. US President Donald Trump stated that oil seized from Venezuela-linked vessels would remain under US control.

For today, Sammaan Capital will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.